DIRECTV 2003 Annual Report Download - page 103

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (continued)
The following table sets forth comparative information regarding common shares outstanding based on the
number of the Company’s common shares outstanding from December 23, 2003 to December 31, 2003 and the
number of shares in the GM Class H Dividend Base prior to December 23, 2003:
2003 2002 2001
(Shares in Millions)
Common shares outstanding at January 1 .................................. 1,381.9 1,301.1 1,298.9
Increase for conversion of GM Series H preference stock ..................... — 80.1 —
Increase for stock options exercised and other .............................. 1.7 0.7 2.2
Common shares outstanding at December 31 ............................... 1,383.6 1,381.9 1,301.1
Weighted average number of common shares outstanding ..................... 1,382.5 1,343.1 1,300.0
Note 13: Incentive Plans
Under the Hughes Electronics Corporation Incentive Plan (the “Plan”), as approved by the GM Board of
Directors in 1999, shares, rights or options to acquire up to 159 million shares of common stock on a cumulative
basis were authorized for grant though December 31, 2003, subject to Executive Compensation Committee
approval.
In connection with the News Corporation transactions, on December 22, 2003 all 91.2 million outstanding
GM Class H common stock options and 3.6 million restricted stock units were converted to the Company’s
common stock options and restricted stock units on a one-for-one basis with identical terms. Also, vesting
accelerated for 11.5 million stock options in accordance with the provisions of the Plan, because the News
Corporation transactions represented a qualifying change-in-control. The information presented below is based
on the GM Class H common stock options outstanding through December 22, 2003, and the Company’s common
stock options thereafter.
The exercise price of the options granted under the Plan is equal to 100% of the fair market value of the
common stock on the date the options are granted. These nonqualified options generally vest over one to five
years, vest immediately in the event of certain transactions, expire ten years from date of grant and are subject to
earlier termination under certain conditions.
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